Valor's Q2-04 results, when compared to Q2-03, show an increase of 18% in total revenues. In Q2-04 Valor generated revenues of close to US$ 7.5 Million matching the company's quarterly sales record as compared to US$ 6.3 Million for Q2-03.

Over a six-month period the company�s accumulated revenues reached US$ 14.6 Million in H1-04, an increase of 17.3% in comparison to US$ 12.5 Million achieved in the same comparable period of 2003.

Net profits in Q2-04 reached US$ 301,000 or US$ 0.02 per share a switch from net losses of US$ 539,000 or US$ 0.03 per share after income tax due to dividend distribution in Q2-03.

In Q2-2004 Valor generated positive operational cash flow of one Million Dollars and accumulated a positive operational cash flow of US$ 2.2 Million for H1-2004.

R&D costs increased for the second quarter of 2004 by more than 31% reaching US$ 2.46 Million as compared to US$ 1.88 Million for the equal period of 2003. When compared on a half year basis R&D costs in H1-04 increased by 44.6% as compared to H1-03.

Sales and marketing expenses increased in H1-04 by close to 10% to US$ 6.79 Million in comparison to US$ 6.18 Million in H1-03.

The increase in R&D and sales and marketing expenses resulted in lower operational profits (EBIT) for Q2-04 reaching US$ 114,000 down from US$ 598,000 for the same quarter of 2003.

Ofer Shofman, President & CEO, commented: "I am delighted with these results. This is the fifth consecutive quarter of revenue growth, and we expect to maintain our growth rate in the second half of 2004. As we already informed the financial markets, we will continue to invest heavily in R&D to secure our technological advantage and future growth. We successfully penetrated with our Trilogy and TraceXpert platforms into several larger key accounts this quarter exchanging competitive systems with our new generation solutions."

The complete quarterly report can be downloaded in the Investor Relations section on the corporate website http://www.valor.com.

About Valor

Valor Computerized Systems [FSE: VCR, WKN 928 731] is a global leader in vertically integrated manufacturing productivity solutions to the electronics industry. Valor is publicly listed on the Frankfurt Stock Exchange. The company's powerful software tools, based on ODB++, the Valor-funded data format which forms the main structure of the new IPC 2851 standard for high-level data exchange, ensure the rapid transfer of optimized data from the design through manufacturing stages. Enterprise 3000 DFM system for physical design verification, Trilogy 5000 for assembly and test engineering, TraceXpert for real-time SMT production monitoring, exact traceability and materials management and the unique Valor Parts Library on-line data service are utilized by designers and engineers to deliver enhanced productivity, higher yields, shorter cycle times and increased product quality. All Valor products are sold and supported by a worldwide network that includes global subsidiary offices, VARs and OEM channels. More information about the company can be found at http://www.valor.com.